Judges can offer any reasoning they please
Indicate whether the statement is true or false
FALSE
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Royal Company purchased a dump truck at the beginning of 2014 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2016, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2016, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. When calculating depreciation for 2016, Royal should a. add the $20,000 to the book value at December 31, 2015 and then allocate the revised basis over the remaining adjusted useful life of 5 years. b. report the effect of the change in life as an expense on the income statement in 2015. c. ignore the change in life on the original cost of $60,000 and depreciate the additional $20,000 cost separately over its useful life. d. expense the $20,000 and depreciate the original cost of $60,000 over its revised estimated total live of 7 years.
According to the text, the relationship between buyer and seller begins when:
A) the product is introduced in the market. B) a customer enquires about the product. C) the purchase is made. D) the customer recommends the product to others.
The purpose of trademark dilution laws is to ________
A) prohibit the use of distinctive trademarks only when there is a possibility of consumer confusion B) prohibit the use of distinctive trademarks even without a showing of consumer confusion C) allow the use of famous trademarks on completely unrelated goods D) allow the use of famous trademarks on completely unrelated goods only if there is no possibility of consumer confusion
The budgeted income statement________
A) reports cash paid for purchases of direct materials B) includes amounts from the sales, cost of goods sold, cash, and capital expenditures budgets C) is accrual-based D) does not include depreciation expense